You might need to helping tackling your debts when you have multiple creditors (the people you owe money to) but long to become debt free. 1 of 3 these three easy ways could help you become debt free.

Bankruptcy – Bankruptcy is an extreme solution to solving your debts, and you should always try other debt solutions first, such as the ones that follow as they are one of the ways that you could become debt free.
Bankruptcy means that the debtor will be debt free in a typical period of 12 months. However, there are severe personal and financial costs of bankruptcy which should never be overlooked.

IVA – Individual Voluntary Arrangement – IVAs were introduced by the Government as a way to help those tackle high levels of overwhelming debt and provide a bankruptcy alternative.

An IVA is legally binding between the creditor and the debtor. IVAs are best suited to those with debts over £12,000 and have over 3 creditors.

As part of the agreement, the debtor commits to paying a lower monthly amount to their creditors over a typical period of 60 months. Once the IVA has ended, any unpaid debt will be cleared and you will become debt free.

Debt Management Plan – Like an IVA, a Debt Management Plan offers you one the chance to make one lower payment to your creditors which you agree to make on a monthly basis, or weekly if your finances suit.
This type of plan will not write off any off your debt but it is much more of a flexible agreement and can change as your circumstances do. It is mainly suited to those with lower debt levels, typically under £12,000. It will take you longer to repay your debts but once you have completed the debt management plan you will become debt free.

There are a number of ways to become debt free and these are just 3 easy ways. The best way to become debt free is to speak with a professional debt advisor who can offer you free debt advice and will go through the options based on your personal financial circumstances.

Resource Box: Looking for a way to become debt free as easy as possible? There are a number of debt solutions which provide you with the opportunity to be debt free. Discover them here…